KO vs PEP: Coca-Cola vs PepsiCo Stock Comparison
Coca-Cola (KO) and PepsiCo (PEP) are the two giants of soft drinks and long-running dividend growers, but different businesses. Coca-Cola is a pure beverage company selling concentrate to bottlers, with operating margins above 30%. PepsiCo is twice the size by revenue, earns more than half of it from snacks and owns much of its bottling: lower margins, more diversification.
KO vs PEP: 1-year performance
Our take
Quality compounder vs. value turnaround. Coca-Cola is executing well: Q3 2026 organic revenue +7% on 5% unit case volume growth, comparable operating margin up ~110 bps to 32.9%, and full-year guidance raised to at least 5% organic growth and 11%+ comparable EPS growth. The market pays for it with a P/E in the high 20s. PepsiCo is the cheaper stock with a higher dividend yield, but its North American snacks and beverage businesses are still shrinking organically, core margins fell and 2026 core EPS growth was cut to 2.5–3.5%. KO is the lower-risk compounder; PEP is a bet that Elliott-backed cost cuts, SKU pruning and refranchising restore growth.
Prices and returns on this page update live; company figures are from company filings and announcements. Not investment advice.
KO strengths
Coca-Cola- Volume-led growth. Q3 2026 organic revenue +7% with unit case volume +5%; every region except North America grew volume 5–6%. Full-year guidance raised to ≥5% organic growth, ≥11% comparable EPS growth and ≥$13B free cash flow.
- Asset-light, high-margin model. Concentrate sold to bottlers gives a ~33% operating margin. Refranchising continues: 75% of Coca-Cola Beverages Africa sold to Coca-Cola HBC for $2.6B and a possible listing of its India bottler.
- Dividend King with a strong balance sheet. 64 consecutive annual dividend increases ($2.12 a year); net debt about 1.3x EBITDA, below its 2–2.5x target range.
PEP strengths
PepsiCo- Cheaper with a higher yield. $5.92 annual dividend, 54 consecutive increases, and a P/E well below Coca-Cola’s; 2026 plan returns $8.9B to shareholders ($7.9B dividends, $1.0B buybacks).
- Scale and diversification. About twice Coca-Cola’s revenue across snacks, foods and beverages; international organic revenue +8% in Q3 2026 and global beverage volume +3%.
- Self-help catalysts. Agreement with Elliott (Dec 2025): ~20% of US SKUs cut, plants closed, sharper pricing. More overhead cuts, a “One North America” food-and-beverage integration and possible bottling refranchising are in progress.
Key risks
- KO Premium valuation: a P/E in the high 20s leaves little room for a growth slowdown.
- KO Divestitures (Africa bottling sale) cut 2027 comparable revenue by ~8% and EPS by ~2%; Q4 2026 has six fewer selling days.
- KO North America volume flat in Q3 2026; a pending IRS tax court decision and currency swings.
- PEP North American snacks still weak: organic revenue down slightly and core margin down 280 bps in Q3 2026.
- PEP 2026 core EPS growth cut to +2.5–3.5%; management says the North America turnaround is taking longer than planned and it is “not competing well” in US soft drinks.
- PEP Higher leverage: ~$40.7B net debt vs ~$24.9B for Coca-Cola, with rising input costs and hedges rolling off.
Total return
Split- and dividend-adjusted.
Quarterly revenue
Q2 2025 – Q3 2026. PepsiCo’s Q4 has 16 weeks, its other quarters 12.
Revenue growth y/y
Reported (not organic) growth, as reported each quarter.
KOPEP
KO vs PEP returns
Split- and dividend-adjustedTotal return includes reinvested dividends. The 5-year return is in the table only.
Risk (1 year)
| Metric | KO | PEP |
|---|---|---|
| Annualized volatility | – | – |
| Max drawdown | – | – |
| Below 52-week high | – | – |
| Correlation of daily returns | – | |
Quarterly revenue ($M)
| Symbol | Q2 25 | Q3 25 | Q4 25 | Q1 26 | Q2 26 | Q3 26 |
|---|---|---|---|---|---|---|
| KO | 12,535.0 | 12,455.0 | 11,822.0 | 12,472.0 | 13,380.0 | 13,380.0 |
| PEP | 22,726.0 | 23,937.0 | 29,343.0 | 19,443.0 | 24,181.0 | 25,274.0 |
KO vs PEP fundamentals
Q3 2026 unless noted| Metric | KO | PEP | Edge |
|---|---|---|---|
| Market cap (live) | – | – | – |
| P/E ratio (live) | – | – | – |
| Dividend yield (live, on current annual rate) | – | – | – |
| Q3 2026 revenue | $13.38B | $25.27B | PEP |
| Organic revenue growth | +7% | +3.1% | KO |
| Volume | Unit cases +5% | Beverages +3%, food +1% | KO |
| Gross margin | 63.2% | 54.4% | KO |
| GAAP operating margin | 33.4% | 16.9% | KO |
| 2026 organic growth guidance | ≥5% (raised) | ~3% (narrowed) | KO |
| 2026 EPS growth guidance | Comparable ≥+11% (raised) | Core +2.5–3.5% (cut) | KO |
| Annual dividend per share | $2.12 | $5.92 | – |
| Consecutive dividend increases | 64 years | 54 years | KO |
| Total debt | ~$41.6B | ~$51.9B | KO |
| Net debt | ~$24.9B | ~$40.7B | KO |
| Buybacks, 2026 year to date | $0.9B (9 months) | $0.7B (36 weeks; $1.0B plan) | – |
| Business model | Beverages only; concentrate sold to bottlers | Snacks, foods and beverages; owns most US bottling | – |
Deals, contracts and corporate actions timeline
| Date | Co. | Counterparty | Deal | Value |
|---|---|---|---|---|
| Oct 27, 2026 | KO | Q3 results | Organic revenue +7%, unit case volume +5%, comparable EPS $0.91 (+11%); full-year guidance raised to ≥5% organic growth, ≥11% comparable EPS growth, ≥$13B free cash flow | – |
| Oct 2026 | KO | Costa Coffee | Second attempt to sell Costa reported after the first sale process was abandoned in early 2026; Coca-Cola paid $5.1B for Costa in 2018 | n/d |
| Oct 8, 2026 | PEP | Q3 results | Organic revenue +3.1% (best since Q4 2023), core EPS $2.34 (+2%); 2026 core EPS growth guidance cut to +2.5–3.5%; more overhead cuts, “One North America” pilot, bottling refranchising under review | – |
| Oct 8, 2026 | PEP | Publicis | Global media partnership | n/d |
| Jun 1, 2026 | KO | Hindustan Coca-Cola Holdings | Exploring a 2027 stock-market listing of its largest India bottler and a partial stake sale | n/d |
| May 6, 2026 | PEP | Shareholders | Quarterly dividend raised 4% to $1.48 ($5.92 a year), 54th consecutive annual increase | $5.92/yr |
| Apr 23, 2026 | PEP | Carlsberg | Carlsberg to bottle and distribute PepsiCo brands in Denmark, Finland and the Baltics from 2029, replacing its Coca-Cola bottling agreements there | n/d |
| Mar 31, 2026 | KO | Henrique Braun | Becomes CEO; James Quincey moves to Executive Chairman | – |
| Feb 19, 2026 | KO | Shareholders | Quarterly dividend raised 4% to $0.53 ($2.12 a year), 64th consecutive annual increase | $2.12/yr |
| Dec 8, 2025 | PEP | Elliott Management | Agreement with the activist investor: ~20% of US SKUs cut by early 2026, three plants closed, sharper value pricing and further cost cuts | n/d |
| Oct 23, 2025 | PEP | Steve Schmitt | Named CFO (from Walmart US), effective Nov 10, 2025 | – |
| Oct 21, 2025 | KO | Coca-Cola HBC | Sale of 75% of Coca-Cola Beverages Africa; Coca-Cola keeps 25%; closing expected in Q4 2026 | $2.6B |
KO vs PEP analysis
Two different business models
Coca-Cola sells concentrate and brands; bottlers own the trucks, plants and most of the capital. That is why its gross margin is above 60%, its operating margin above 30%, and why it keeps refranchising: the Africa bottler sale and a possible India bottler listing make the company even more asset-light. PepsiCo makes and distributes much of what it sells, especially in North America, and more than half its revenue comes from snacks and foods. The result is roughly twice the revenue at about half the operating margin, with more exposure to US consumer and retailer dynamics.
Growth: volume is the difference
Coca-Cola’s 7% organic growth in Q3 2026 came mostly from volume (+5% unit cases), not price, which is the healthiest kind of growth for a consumer staple. PepsiCo’s 3.1% organic growth was its best in almost three years but relied on international markets; North American snacks and beverages both declined organically, and core margin in North American snacks fell 280 bps. Management acknowledged it is not competing well in US soft drinks and is raising brand investment.
Dividends and balance sheet
Both are Dividend Kings with 50+ years of consecutive increases (Coca-Cola 64, PepsiCo 54), and both raised their dividends 4% in 2026. PepsiCo’s yield is materially higher because its share price has de-rated. Coca-Cola carries less debt (~$24.9B net vs ~$40.7B) and generates more free cash flow relative to its size, so its dividend has more coverage; PepsiCo’s payout is safe on cash flow but leaves less room while the turnaround is funded.
Valuation
Coca-Cola trades at a premium P/E (live figure in the table above) for steadier growth and margins. PepsiCo trades at one of its lowest multiples in a decade. The spread is the market’s view that Coca-Cola’s algorithm is intact while PepsiCo’s North American business needs fixing; if Elliott-backed cost cuts and refranchising work, PEP has more room to re-rate.
What to watch
Full-year results and 2027 guidance from both companies; for Coca-Cola, closing of the Africa bottler sale, the India listing and any Costa deal; for PepsiCo, North American volume trends, the size of the next cost-cut program and whether it refranchises US bottling.
KO vs PEP FAQ
Which is the better dividend stock, KO or PEP?
Both are Dividend Kings. PepsiCo pays more ($5.92 a year, 54 consecutive increases) and has the higher yield; Coca-Cola pays $2.12 a year with 64 consecutive increases, and has lower debt and more free cash flow relative to its dividend.
Which company is growing faster, Coca-Cola or PepsiCo?
Coca-Cola. In Q3 2026 its organic revenue rose 7% with 5% volume growth, versus 3.1% organic growth for PepsiCo, whose North American snacks and beverage businesses declined organically.
Why is PepsiCo cheaper than Coca-Cola?
PepsiCo’s North American snack and drink businesses have been shrinking organically, margins are under pressure and 2026 core EPS growth guidance was cut to 2.5–3.5%. Coca-Cola raised its guidance, so investors pay a higher P/E for its steadier growth.
Is PepsiCo bigger than Coca-Cola?
By revenue, yes: PepsiCo had about $25.3 billion of Q3 2026 revenue versus about $13.4 billion for Coca-Cola, because it also sells snacks and owns much of its bottling. By market value, Coca-Cola is larger.
What is Elliott’s role at PepsiCo?
Activist investor Elliott Management built a large stake and in December 2025 reached an agreement with PepsiCo on cutting about 20% of US product SKUs, closing plants, sharper pricing and further cost reductions.